UK Keeps Personal Allowance at £12,570 Through April 2031

The United Kingdom’s tax authority, His Majesty’s Revenue and Customs (HMRC), announced on 6 December 2025 that the personal allowance will remain at £12,570, roughly equivalent to IDR 279.7 million, until April 2031. The decision means the tax‑free threshold will not be raised for fiscal years 2026 through 2031.

Because the allowance stays unchanged, an estimated 700,000 additional individuals are expected to become liable for income tax in the 2030‑31 fiscal year, including about 920,000 more taxpayers in the 40 % bracket and 4,000 in the 45 % bracket. Income‑tax rates remain at 20 % for earnings £12,571‑£50,270, 40 % for £50,271‑£125,140, and 45 % for earnings above £125,140. Finance Minister Rachel Reeves said maintaining the allowance is needed to encourage broad tax contributions, while acknowledging its impact on low‑paid workers.

The Low Incomes Tax Reform Group (LITRG) warned that the policy will burden minimum‑wage earners, who will now owe tax on income earned from as little as 20 hours of work per week. The government expects the measure to boost public‑revenue collections to fund services and support economic stability.